GreenTech Metals Ltd (ASX:GRE) and Anax Metals Ltd (ASX:ANX) are set to sign a memorandum of understanding (MOU) which will investigate the potential for treatment of the Whundo base metal deposit and other assets managed by Greentech at Anax’s Whim Creek processing hub in the Pilbara.
This arrangement – dubbed the Pilbara Base Metal Alliance – is aiming to produce more than 20 kilotonnes per annum of copper from the region overall, with the assets at Whim Creek facilitating a near-term processing option for open pit mining at Whundo, 100 kilometres away.
As a result of the MOU, GreenTech and Anax will collaborate on both feasibility work and permitting to develop the proposed Whim Creek Project, which will comprise a 400,000-tonne per annum concentrator, and a refurbished heap leach facility which will be able to treat oxide, transitional and supergene ore.
The companies are hoping that the Whim Creek hub could achieve a production profile of 20-30 kilotonnes per annum of copper equivalent over a mine life of ten years, making it a major player in the West Australian copper scene.
Anax managing director Geoff Laing said the MOU was a step in the right direction for developing the region’s potential further.
“We are extremely pleased to take these first steps towards creating an expanded Pilbara copper business with our neighbours, GreenTech,” he said.
“We look forward to delivering scalable assets with near term “energy metals” production.”
GreenTech executive director Tom Reddicliffe said a potential formalised alliance with Anax would bring near term development of Whundo much closer.
“Our project already has defined open-pittable copper and zinc resources and potential to define additional near surface resource tonnes at both Yannery and Ayshia,” he said.
“The alliance could be the catalyst that the West Pilbara needs to become a significant copper producer and we look forward to working closely with Anax to make this a reality.”
Whim Creek sits 115 kilometres southwest of Port Hedland and 40 kilometres south of Karratha.
GreenTech Metals has been trading at 23 cents, while Anax Metals has been trading at 5.4 cents.
The copper price has soared to highs of US $5.13 per pound, before retreating more recently to US $5.05.